Travel Reference
In-Depth Information
2007, the Australian dollar collapsed to around 20 baht to the dollar. I ran to the bank and
exchanged a lot of my Thai baht for $1,000 AUD, since I was going to Australia the follow-
ing month. A week later, the Australian dollar recovered to 28 baht. In acting fast, I saved
myself 8,000 baht, which is more than $250 USD, giving me more money for my trip. You
don't need to be a financial expert, but watch the currency rates when you travel. Looking
at a simple graph can tell you if the rate is getting better or worse. I had no idea if the ex-
change rate would get better or worse, but I knew that drop in Aussie dollars was a big deal
and it was worth taking advantage of, even if the rate went down more. You'll need to be
comfortable carrying cash, though, and stay in a place where you can lock up your extra
cash in the hostel or hotel safe in order to ensure that it's not lost or stolen.
I use the website xe.com to check exchange rates. If you have a smartphone, like an iPhone,
BlackBerry, or Droid, the free Currency app is also a good way to monitor rates. You can
get the app from currencyapp.com.
Don't Change Unneeded Cash:
Changing cash, especially at the airport, is the worst thing
you can do. Unless I am stuck with cash I need to get rid of or the exchange rate suddenly
changes a lot, like in the example above, I never change money. Most exchange bureaus are
so far down the financial food chain they don't have the clout to offer good exchange rates.
Moreover, nonbanks charge especially high commission and fees for exchanging money,
and if they don't, they make their money by giving you an even lower exchange rate. Sim-
ply put, unless you have to, never exchange cash—whether that is at an airport or in the
middle of town. Just withdraw money from the ATM.
Don't Use ATMs in Weird Locations:
Using those ATMs you find in hotels, hostels, local
7-Elevens, or some other random place is a bad idea. They may be convenient, but you'll
pay for that convenience. They often charge high ATM fees and offer horrible exchange
rates. Even if you get the ATM fee waived, the exchange rate will be worse than a major
bank. Avoid these ATMs.
Don't Change Money at Airports:
Most airport exchange bureaus don't offer good ex-
change rates. It is sometimes shocking to see how bad the exchange rates are. Never, ever
use an exchange bureau. I'm not a fan of exchanging cash in the first place but if you must,
skip these and use a bank. Moreover, avoid using the company Travelex at all costs; they
have the worst rates and fees I've ever seen, and I always avoid them and their ATMs.
Always Pick the Local Currency:
When you use your credit card abroad, you are often
given the option of being charged in your home currency (for example, instead of being
charged in euros, they will charge you in U.S. dollars). Never say yes to this option. The
preset rate at which they are converting the currency is always worse than the rate your bank
will give you. Pick the local currency and let your credit card company make the conver-
sion. You'll get a better rate.
A quick note on traveler's checks: Don't use them. Many banks won't even exchange them, and they are
too easily lost or stolen. There's nothing they can do that a piece of plastic can't do better. I used them once
back in 2004 and realized that with an ATM offering a better exchange rate, I was silly for getting them.
They are outdated, and I would never advise someone to get them.
